Agenda item

The Overview and Scrutiny Management Committee was presented with the Finance and Performance Report for Quarter 1 2018/19 which provided an overview of progress made since the last report.

 

Finance and Performance

 

The Assistant Director of Finance was in attendance at the meeting, and responded to key issues of concern raised within the report.

 

It was explained that overall performance in Quarter 4 and throughout the year had been good although challenging at times.  It was outlined that finances had been well managed with an overspend amounting to 0.5% of total spend.  It was reported that at year-end, the Council overspent by £2.5m a £1.3 reduction from the Quarter 3 forecast. 

 

It was stated that £2.8m National Non-Domestic Rates (NNDR) earmarked reserve was released to general reserves increasing the balance to £12.3m uncommitted reserves; it was acknowledged that it would have been good if this had been higher. 

 

It was recognised that the main reason for the Councils overspend was due to increased demands and pressures on Doncaster Children’s Services Trust.   It was outlined that Regeneration and Environment, had experienced an improved position in terms of overspend from Quarter 3 and that there had been a reasonable underspend in Corporate Resources, which have provided some balance.  In terms of the Capital Programme there had been expenditure for 2017/18 of £101.7m compared to revised budget of £115.2m, most of which is general slippage in the programme.

 

In terms of capital receipts, it was explained that not as much had come in as thought. It was reported that there had been a shortfall of capital receipts of £1.3m, which are expected in 2018/19.

 

·         In terms of housing, the Council had delivered a further 280 Net Additional Homes built in Quarter 4 bringing the latest figure to 1,173 during the last 12 months. 

·         More people have been helped to remain at home.

·         Local authority spend with local businesses, that more was being undertaken with suppliers to use local chains and encourage local firms etc. 

·         It was added that overall staff sickness for the year-end stood at an average of 9 days per employee.  It was reported that had been a reduction on the previous year but had not met the target due to a number of different reasons. 

 

Uses of consultants – Members were informed that a requirement to develop better workforce planning had been identified.  It was recognised that there had been difficulties in recruiting to certain areas such as IT that necessitated specific expertise.  It was shared that there was a desire to take this work forward and formulate recommendations.

 

Capital Receipts – It was outlined that long term effect on slippages would occur further down the line with most slippages to be seen in IT areas.

 

Doncaster Children’s Services Trust (DCST) – It was explained that the Council did not own the Trust and that future arrangements were being considered in order to gain greater control and influence. 

 

In respect of recruitment to Senior Management Level, it was outlined that money had been being taken out of this area.

 

Members were reminded that the Council’s contractual limit was to provide 70% risk share contribution although it was in everyone’s interest to look after the Borough’s children.  It was reported that the financial position of the Trust compared around mid-range to others.  It was added that issues included increased demand and spend which was being experienced across the country and would not be changing in the near future.  It was explained that there was no evidence to support that having a Trust increased costs. 

 

Members were assured that more was being undertaken to ensure that there was more transparency to develop a better working relationship with the Trust.  An example was provided that there was now monthly monitoring in place instead of being done on a quarterly basis.  Concern was raised around the impact of future projects on the budget.  It was acknowledged that resources were in place to deliver those projects and there was a great deal of challenge built into the programme.

 

Members were also informed that work needed to be undertaken with Councillors and within the Council to identify priorities and the resources required to deliver plans around the Borough.

 

Regeneration and Environment – Doncaster Living

 

The Assistant Director of Trading and Property Services provided an update to the Committee, giving an overview of the Directorate’s successes, and any current concerns.

 

It was reported that the Directorate was performing well and that the majority of targets were being achieved, the following was highlighted to Members:-

 

·         Improvement of £0.8m from Quarter 3 to Quarter 4 2017/18, a positive direction taking into consideration £340K additional cost associated with the snow related activities.

·         Changes partly a result of tightening of budgetary control, re-enforcing accountability, minimising non-essential spend, more income than expected in highways third party works and utilities works on highways.

·         Capital Receipts: -

a.        Less than predicted, it was expected that at Quarter 3 2017/18 the shortfall was £4.5m however at Quarter 4 it was £1.3m.

b.        A surplus in 18/19 was expected and that there were plans to create a £5m strategic acquisition fund.

·         Capital spend was £86.4m against a budget of £95.8. this was due to some delays in FARRRS/Carillion, DN7 and Herton Triangle due to initial issues securing tenants.

·         It reported that sickness days had reduced at 8.5 days against a target of 9.5 days and that PDRs were now at 96% against a target of 95%.

·         Recycling still exceeded target at Quarter 4 despite new contract issues and the normal lower levels of green waste at this time.

·         Major planning applications were being processed within a 13 week timeframe at 94% against national target of 70% (including negotiated extension of time).

·         Average wage had increased by 30p

·         Fly-tipping had experienced a drop in performance of 83% against a target of 90% and that this was being looked into.

·         That in 18/19, the Investment Level was £252m against a target of £170m Investment with plans in place for it to be even higher.

·         Finally, in respect of internal audit, it was reported that there was one action outstanding in relation to waste system which would be sorted out within the next 4 weeks

 

In terms of grass cutting, Members were informed that extra resources had been put in place to address existing issues.  Also that 6 new staff had been recruited to work specifically on bereavement areas in response to significant complaints made regarding the upkeep of cemeteries.

 

Regarding apprentices, Members were assured that everything was being done to retain apprentices by working closely with unions and employing apprentices when staff left the authority.  It was added that work was being undertaken with colleagues in HR and Finance to consider new funding streams.

 

In relation to spend on agency and additional workforce spend, this was reported as being above average.  It was reported that more could be done to look ahead and recognise what the authority’s priorities were and move forward. 

 

It was recognised that agency staff were based largely on the front line, in areas such as Adults Social care although there was a desire to push the figure down and develop a more stable workforce.  It was commented that the task was challenging due to factors such as the quality of the market, sickness absence and agency rates which had to be traded off against local authority recruitment freezes whilst meeting service demands.  Members were informed that ‘Your Life Doncaster’ was considering its workforce strategy and was recognised that there was a need to embed this strategy across other service areas.

 

In terms of fleet management, it was added that there was a future report to consider how the Council’s fleet could be made greener.  It was explained that electric powered vehicles were expensive to purchase although significantly less expensive to maintain.  It was continued that work was being done to access government grants available although there wasn’t enough support to use such vehicles, for example, not enough electrical charging points available at present.  It was also explained that the Councils current fleet included transit vans and there was no electric powered vehicle comparable with that type for around another four years.   In line with the Councils new parking strategy, it was seen that there was a great deal being undertaken in this area.

 

Doncaster Caring

 

The Chair welcomed the Director of People and Victor Joseph (Public Health Consultant) to the meeting and invited them to update Members with regard to performance updates and key issues.

 

Members were informed that future pressures were being addressed accordingly and that performance was generally positive and on target. 

 

In terms of Adult Social Care, Members were informed that more focus was needed around making improvements to address an increasing number of challenges. It was reported that there had been a reduction in residential placements, an increase in Direct Payments and increase in homecare especially through the letting of CCASH projects[MC1] ,increased demands due to the new Deprivation of Liberty (DoLs) legislation that had resulted in increased case work and additional care costs that related to direct payments and S117 Mental Health placements. Members were assured that they would always be care led but also be aware of finances and were looking more towards integrated services and as part of Place Plan could be quite complexed. 

 

In terms of Direct Payment, a Member enquired as to how many people with direct payments used the money to employ their own staff and what direction this was heading. (ACTION) The Director of People offered to provide this information following the meeting.

 

In respect of physical buildings, it was recognised that there were benefits of joined up thinking which could be better and could support the continuity of community buildings and therefore social investment as well as capital savings.

 

A comment was made in relation to statistical information shown within the Doncaster Growing Together framework and the lag of one or two years that existed behind certain indicators.  In respect of life expectancy graph, Members were offered details showing the different between male and female and also more recent details one on preventable deaths.

 

Doncaster Learning

 

The Assistant Director of Commissioning and Business Development was in attendance at the meeting to provide the Committee with an update on issues within the Children and Young People Directorate.

 

Reference was made to the performance elements of the Trust and challenges attributed to absent and exclusions.  In respect of persistent absence stays in secondary schools, it was explained that this figure had flattened at odds in comparison to national figures during the last quarter.  It was noted that the launch of an Attendance Strategy had been introduced in November 2017 which focused on working with those schools that were performing below the national average.  Reference was made to the challenges faced around parental support and behaviour especially promoting good habits prior to secondary school.  It was added that the Cabinet Member for Children, Young People and Schools and the Mayor were keen to launch the attendance campaign which would impact on more deprived groups.

 

It was recognised that high level absenteeism rates were linked with exclusions and that identified areas of focus included leadership and quality of teaching.  In respect of Children in Care, it was reported that one in four were not in school of secondary age and it was felt that there had been a breakdown in the nature of care settings.  It was explained that Doncaster was performing better than the national average at 5.9 compared to 10.  

 

Members were informed that the Youth Crime Prevention Team had undertaken work with other organisations, working tirelessly with people in care.  Members were informed that concerns would be taken back to the Trust for a direct response on interventions.  It was recognised that there was a significant amount of governance around this issue; this included the Children in Care Council and links to the Corporate Parenting Board where there was a regular challenge in place. 

 

Residential Settings – Members were assured that there was a stronger grip on in-house fostering largely where poorer performance was seen.  It was continued that under the Corporate Parenting Board multi-agency partnership and Virtual School Head teacher whose role it was to consider attendance and achievement outcomes (which had been validated as ‘good’).

 

Outcomes Framework – Reference was made to performance around achievement of Level 3 qualification by the age of 19, Members questioned what the Council was doing to support young people and adults with Learning Disabilities into work and questioned how many people have been taken on as a lead to other companies.  Members were informed that opportunities had been provided through day centres although they were not permanent positions.  It was further explained that Entry to Employment Rates for Looked After Children indicated positive results.  It was explained that part of the challenge was achieving entry to apprenticeships and therefore undertaking traineeships was a potential area to look at.  It was added that internships and post 16 activity could be considered further.  It was recognised that positive promotion of this area was currently low to non-existent.

 

Concern was raised about reductions in exclusions from schools and its link to increases in school violence.  Members were told how efforts had been made to promote more inclusivity within schools, it was also emphasised that policies were in place to make exclusions dependent on behaviour but it was not the case that schools were advised against taking this course of action.  Members were informed that policies had been challenged where there had been an indication of possible excessive judgement.  Bernadette Nesbitt supported that schools did not retain pupils who had been violent and that policies dealing with exclusion were triggered at an early stage. 

 

  RESOLVED that

 

    i.        the quarter 4 performance and financial information be noted; including;

 

·         changes to the Strategic Risks as detailed in paragraphs 39 to 41;

·         carry forwards approved by the Chief Financial Officer, detailed in Appendix A

·         virements approved by the Chief Financial Officer, Chief Executive and Portfolio Holder Corporate Resources, detailed in Appendix A

·         new additions to the Capital Programme, detailed in the Appendix A.

·         £0.28m funding approved for the Doncaster Children’s Services Trust for the remainder of the 2017/18 overspend